3 hours. 2 hours lecture and 2 hours lab per week.
Forest Economics
Analytical Thinking
Critical Thinking
Course Description
An overview of the application of economic analyses to forest
resources. Forest resource professionals will be given a better
understanding of the economic factors that influence forest
management decisions.
Additional Requirements for Graduate Students: Students will be graded on a different scale. They will be
assigned readings from academic literature covering advanced
concepts in forest economics and finance. They will have to
complete a term project which will involve a written analysis of
a real-world management problem. The analysis will involve the
use of Excel to program and solve complex forest economics and
finance problems.
Athena Title
Forest Economics
Prerequisite
Second-year student standing
Semester Course Offered
Offered fall
Grading System
A - F (Traditional)
Student Learning Outcomes
By the end of this course, students will know the economic and financial tools needed to analyze and solve real-world forest management problems.
By the end of this course, students will understand the economic factors that influence forest management and forest products decisions.
By the end of this course, students will have developed decision-making skills necessary to effectively meet private and public goals and evaluate the impacts o policies and markets on forestry.
Topical Outline
1. Review of Economic Principles:
Demand and supply; price, quantity, and scarcity; revenues and
costs; production functions; marginal analysis; profit
maximization.
2. Market Allocation of Resources:
Market structure; the role of prices; welfare analysis; market
failures.
3. Capital Theory:
Interest rate; compounding and discounting.
4. Investment Evaluation Criteria:
Net present value, internal rate of return; benefit to cost
ratio, pay-back period; project selection criteria.
5. Management of Forest Capital:
Financial maturity, optimal rotation length, timber stand
improvement, and stocking.
